The way I see it is that the IMF are crap at what they do. China has put together the Asia Infrastructure Investment Bank (AIIB) and are working on the Asian Development Bank to counteract the IMF and their ever changing rules. The BRICS nations (Brazil, Russia, India, China, South Africa) are pushing for reforms to the IMF that, according to The Brics Post, are being blocked by the USA. These reforms will give greater say to the growing emerging smaller countries that have little or no say to how they borrow money, and repay it to the IMF. As Russia’s Foreign Minister Mr. Lavrov has mentioned the GDP of the brics nations has ‘grown from 7.7% to 22%’since 1990. It makes sense to add reforms that give small growing nations a say.
China is also looking to gain entry with the Yuan into the IMF’s special drawing rights basket (SDR). The basket currently holds the US dollar, Japanese Yen, the Euro, and the British pound. Under the IMF’s rules of gaining entry to the SDR basket, it would require China to meet the export criterion. According to the IMF China meets this criterion but the other rule of freely usable currency is to be reviewed by the IMF board. The IMF board has now agreed to extend looking at adding China into the SDR basket of reserve currencies until September 30, 2016. This making up rules, not using rules, and learning as we go is what a lot of nations who have signed to the AIIB want to get away from.
According to Reuters an AIIB spokesperson has said “Privatisation will not become a conditionality for loans” and “deregulation is also not likely to be a condition”. He also suggests the AIIB will not tell others what to do from the outside and will look at conditions in each country.
The IMF are now reviewing their ‘guide for staff relations with civil society organisations’ set out in a 2003 paper. This paper suggests that these CSO’s can put forward governmental policies to the IMF. The new 2015 guide can be read here. So who was it that put forward the policy recommendations to Australia in this latest article mission?
I for one think we need more choice when borrowing money for our country and not just a choice of one lender. As it is now we see a lot of privatisation going on which is good for.... well the private companies involved and not the people who have to pay for the money borrowed. We can now see what has happened to Greece. They are being sold out and the wealthy come in and buy everything super cheap. These sales include Islands, Airports, Shipping Ports, and anything that was owned by the Government (citizens). If you open your eyes you can see it happening everywhere. My water gets sold by the state government, who are owned by the citizens of the state govt (us), to a water company who on sells its use and supply (through infrastructure) to the people. We and not private companies should still own all this? Is air next?